D-LEDGER: What’s the D-eal?

If you manage, report on, or are familiar with philanthropic funds – you may have noticed that there are now two ledgers, E and D. The D-Ledger was created in response to the increased strategic focus on philanthropy at ANU. It is critical in ensuring philanthropic funds are managed in accordance with legislative requirements and donor wishes.

What's the D-eal?

What’s the D-Ledger and how does it differ from other Ledgers?

Philanthropic gifts to the university must be maintained in a separate ledger, according to Deductible Gift Recipient status (DGR = tax deductible receipts) legislation. The D-Ledger is used to manage gifts to be spent down over a defined period of time. The E-Ledger is used to manage gifts that are invested and held in perpetuity.   No other ledger (S, Q, R or even alphabet soup) can hold gifts to the University.  Gifts can be used to support a range of activities, including but not limited to research, scholarships and prizes but all must be spent in line with donor wishes.

Why not use the E-Ledger?

As ANU enters into a period of significant fundraising, a second ledger was required to define the difference between the two types of gift funds. The E-ledger (endowment - perpetual) refers to gifts that are invested to support a purpose in perpetuity, while the D-ledger (spend down - Term) refers to gifts that are finite and have a defined end date.

How did this come about?

After an analysis of current funds, a consultation paper was distributed in September 2017. The recommendation to implement a D-Ledger was presented and endorsed by GMSDD and Council.

What is the impact?

When perpetual and term gift funds were combined in the E-Ledger, it was unclear if the entire cash balance of the fund could be spent or if the fund was restricted. Splitting the ledgers provides clarity and the enhanced reporting mechanisms help delegates’ financial decisions.

How does this impact?

Decisions on the operations of funds are easier as it is clear how much there is to spend. Along with improved financial reporting, access to fund purpose statements are now available on ERMS, providing valuable information for delegates to confidently expend in line with the fund purpose. 

Your feedback is important

We are here to help! If you have any questions or concerns not covered in the FAQs, please get in touch with Advancement Services or contact your Finance team for clarification.

Frequently Asked Questions

How do I know if it is an E or D-ledger?
The ledger is identified by the first letter of your fund number or GL Code (D or E)

How do I know if my fund ledger has changed?
Advice of updated fund numbers has been circulated throughout finance and administration teams. If in doubt, please check with your finance contact or Advancement Services.

What is the D-Ledger
The D Ledger is used to manage gifts that have been given to ANU to be spent down over a defined period of time.

Where can I find information?
If you have questions not answered by the FAQ’s, please email advancement.services@anu.edu.au 

How does a fund become perpetual?
A fund becomes perpetual when the asset base reaches the minimum threshold required to generate enough interest to support the purpose in perpetuity. This interest earned is also referred to as the Annual Distributable Amount (ADA).

Perpetual versus Term Funds

• E Funds (endowment - perpetual) hold gifts that are invested to support its purpose in perpetuity.  The interest earned, or the Annual Distributable Amount (ADA), is used annually to support budgeted commitments. 
• D Funds (spend down - term) hold gifts that are finite and have a defined end date, usually 3 – 5 years. Term funds – Growth are created for fundraising initiatives approved by the Associate Director, Philanthropy and can be converted to Perpetual Fund when they reach minimum thresholds.

What can it be spent on?
Fund delegates can now access fund purpose statements on ERMS. These statements provide valuable information for delegates to confidently expend in line with the fund purpose.  

Can we report on fund activities directly to the donor?
Communications with donors should always occur in partnership with AR&P. This ensures that messaging and information is consistent and held in a central location. 

Can I put money from R or Q into the D and E-ledger?
Money from R or Q funds can only be transferred to a D and E ledger under the terms of an approved matching agreement with the maximum ratio of 1:1 with received gifts.

Can I transfer money out of the D/E into Q/R funds?
To measure progress against the Strategic Plan and to ensure the University’s reporting obligations can be met, all transactions relating to gifts must be contained within the E&D Ledgers.

How much can I spend?

It is important to remember that E Funds are restricted to an annual distributable amount each year. If you are unsure what this amount is please check with advancement.services@anu.edu.au.

What reports can we access for D/E Funds?

Existing reporting functionality similar to other ledgers is available. Your finance team can assist with D&E fund reporting.